Gold Sum­mary for Sept. 15, 2017

Stockwatch Daily - - MINES & METALS - By Stock­watch Business Reporter

NEW YORK spot gold lost $9.80 to $1,319.20 on Friday. The TSX Ven­ture Ex­change gained 3.42 points to 779.66 while the TSX Gold In­dex lost 1.36 points to 200.79. De­tour Gold Corp. (DGC) led Cana­dian golds lower, drop­ping 34 cents to $15.74 on 6.28 mil­lion shares. Gain­ers were in short sup­ply, al­though Bar­rick Gold Corp. (ABX) added 18 cents to $21.07 on 11.40 mil­lion shares an d Kin­ross Gold Corp. (K) added two cents to $5.88 on 62.82 mil­lion shares.

Ge­orge Burns’s El­do­rado Gold Corp. (ELD), down eight cents to $2.82 on 32.90 mil­lion shares, has wrung two more per­mits from the balky Greek govern­ment, but it wants more. The com­pany had said on Monday that it was sus­pend­ing op­er­a­tions in Greece: halt­ing in­vest­ment in its mines, devel­op­ment projects and ex­plo­ration as­sets un­til the govern­ment agrees to “en­gage con­struc­tively” with it. On Wed­nes­day, the com­pany got an op­er­at­ing per­mit for the Olympias mine and an in­stal­la­tion per­mit for Kokki­no­lakkas. Now, it has ap­proval for a study for the clo­sure of the Old Olympias op­er­a­tion and an in­stal­la­tion per­mit for the (new) Olympias.

Mr. Burns, El­do­rado’s pres­i­dent and chief ex­ec­u­tive of­fi­cer since he re­placed Paul Wright this spring, says that the only ap­provals still out­stand­ing are an in­stal­la­tion per­mit for the flota­tion plant at Sk­ouries, as well as other mat­ters per­tain­ing to the Sk­ouries op­er­a­tion. De­spite the flurry of per­mits over the past few days, which Mr. Burns called “a pos­i­tive step for­ward,” he ap­pears un­will­ing to budge from his de­ci­sion to sus­pend in­vest­ment un­til the Sk­ouries ap­provals are cleared up. Fur­ther, he wants the Greeks to show they are “will­ing to en­gage with the com­pany in con­struc­tive dis­cus­sions” be­fore he turns on the in­vest­ment tap once again.

El­do­rado’s plan for Olympias calls for it to pro­duce 125,000 ounces of gold equiv­a­lent an­nu­ally, ramp­ing up to 300,000 ounces in the early 2020s. At Sk­ouries, the com­pany projects av­er­age pro­duc­tion of nearly 270,000 ounces of gold equiv­a­lent from 2020 to 2042, as­sum­ing the Greeks get on board.

Darren Blaney’s Amer­i­can Creek Re­sources Ltd. (AMK), down one-half cent to 5.5 cents on 2.11 mil­lion shares, is cheer­ing news from its 20-per-cent-owned Treaty Creek gold project in the Golden Tri­an­gle dis­trict of north­west­ern Bri­tish Columbia. The op­er­a­tor, Wal­ter Storm’s Tu­dor Gold Corp. (TUD: $0.73), has re­ceived as­says of up to 10.97 grams of gold per tonne over 1.95 me­tres from the feeder vein sys­tem dur­ing pre­lim­i­nary drilling at the HC zone. Mr. Storm, Tu­dor’s pres­i­dent and CEO, says that he is very pleased with the re­sults so far. He says that the re­sults “have ex­ceeded our ex­pec­ta­tions” and he and his crew look for­ward to com­plet­ing a re­source es­ti­mate on the HC zone, and at the Cop­per Belle zone, which is now un­der way.

Mr. Blaney, Amer­i­can Creek’s pres­i­dent and CEO since the start of 2016, chimed in as well, adding a Howe Street spin to Mr. Storm’s mat­ter-of-fact com­ments. Mr. Blaney says that the new HC zone, a north­ern ex­ten­sion of the GR2 zone, “is a bonus that we were not ex­pect­ing,” adding that he is very en­cour­aged that HC dis­plays “re­mark­ably sim­i­lar char­ac­ter­is­tics” to the Eskay Creek de­posit. (Dino Cre­monese, pres­i­dent of Teu­ton Re­sources Corp. (TUO: $0.215), which like 5-cent Amer­i­can Creek, holds a 20-per-cent-car­ried in­ter­est, had noth­ing to say.)

Mr. Blaney earns $180,000 per year in salary as pres­i­dent and CEO of Amer­i­can Creek, which is less than the $255,000 per year he got in 2014 as its chief op­er­at­ing of­fi­cer. Mr. Cre­monese got over $111,000 in salary last year from Teu­ton, while Mr. Storm, Tu­dor’s ma­jor­ity share­holder and its pres­i­dent and CEO since the spring of 2016, drew just $30,600 in salary in fis­cal 2017.

Dr. Catherine Far­row’s TMAC Re­sources Inc. (TMR), up 17 cents to $9.39 on 168,000 shares, has re­ceived as­says of up to 22 grams of gold per tonne over 17.6 me­tres from the Boston zone on its Hope Bay project in Nu­navut. A sec­ond hole in the lat­est batch of as­says pro­duced 15.9 grams per tonne over 18.4 me­tres. TMAC also recorded high grades from the Doris BTD zone al­though the in­ter­vals were short, with one hole pro­duc­ing 18.8 grams per tonne across 2.4 me­tres.

The 52-year-old Dr. Far­row, TMAC’s $500,000-a-year CEO, ex­pressed her plea­sure with the “very pos­i­tive and en­cour­ag­ing re­sults” from TMAC’s ini­tial ex­plo­ration drilling pro­gram at Boston, which will be used to up­date the com­pany’s min­eral re­source es­ti­mates next year. TMAC lists 17.8 mil­lion tonnes mea­sured and in­di­cated at 8.6 grams of gold per

tonne at Hope Bay, with an­other 7.5 mil­lion tonnes in­ferred at 7.1 grams per tonne, for a to­tal of 6.6 mil­lion ounces. About four mil­lion of those ounces re­side at Madrid; Boston hosts about 1.4 mil­lion ounces and Doris about 1.2 mil­lion.


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